Energy sector - Saudi Arabia
Saudi Arabia’s energy sector is transforming fast. Under its reform agenda Vision 2030, the country is not only diversifying its economy, moving away from oil dependence by developing alternative industries, but also diversifying its energy sources. As part of Vision 2030, the Saudi Green Initiative was developed; the Saudi strategy to achieving net-zero emissions by 2060.
The Kingdom’s ambition to become a global energy hub is clearly demonstrated through its flagship Green Hydrogen Project in NEOM, which aims to produce up to 600 tons of green hydrogen daily, converting into 1.2 million tons of green ammonia annually. This ambition is reinforced by various other initiatives like the Yanbu Green Hydrogen Project (over twice the scale of the NEOM project), projects in the area of blue hydrogen and projects related to carbon capture, utilization, and storage (CCUS).
Hydrogen value chain
The Netherlands is well positioned to contribute across the entire hydrogen value chain, from import and production to storage and distribution. Due to its strategic location by the North Sea, with its many wind farms, heavy industry and well established naval connections, the Netherlands can serve as a hydrogen hub to North-Western Europe. This capability is largely driven by the Port of Rotterdam, Europe’s largest port, which serves as a gateway to the rest of the European mainland. Rotterdam is also home to Maasvlakte 2, a major civil engineering project where a conversion park is being established to support electrolyser developments from a diverse range of energy companies.
Innovations implemented in the Port of Rotterdam can be scaled to other Dutch ports and even replicated internationally. In addition, new pipeline connections to the east and south are under development, expanding the Netherlands’ reach and improving access for sharing hydrogen technologies and expertise. Existing tank storage infrastructure, currently used for LNG and other fossil fuels, can also be adapted for clean hydrogen storage. The Port of Amsterdam is also developing large-scale import terminal projects for liquid hydrogen and liquid organic hydrogen carrier (LOHC).
World Hydrogen Summit
To enhance dialogue and the development of clean hydrogen applications worldwide, the Netherlands annually hosts the World Hydrogen Summit, bringing together energy leaders, experts, and cutting-edge technologies from around the globe. During the World Hydrogen Summit in 2023, the Netherlands and Saudi Arabia signed a Memorandum of Understanding (MoU) on Energy cooperation, a.o. in the fields of hydrogen, renewable energy, energy efficiency, electricity, and energy security. In the MoU, both countries expressed their shared ambition to develop and activate international supply chains connecting the two countries and positioning the Netherlands as the hydrogen gateway to Europe.
Cooperation between Saudi Arabia and the Netherlands
To further enhance the cooperation between Saudi Arabia and the Netherlands in the field of hydrogen, the Dutch government, together with the Dutch private sector and knowledge institutes in 2023 entered into a public-private partnership (PPP) on hydrogen. This PPP serves as a vehicle to jointly explore the Saudi market and is a platform for dialogue by facilitating the exchange of expertise, knowledge, and technologies. The PPP on Hydrogen consist of a consortium of around 50 parties, active in the hydrogen sector, covering the full hydrogen value chain in the Netherlands.
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